Ianjamesmcadam’s Blog

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My first outburst on BBC’s Peston’s Picks 2009

Posted by Ian McAdam on February 12, 2009

Haven’t commented on here for ages, and I’m not here to talk about China taking over the world.  That’s for another time.  There a few things I have to say to put forward my baby economic model.  I’ve been quiet for too long so now let me diatribe!

With regards to price discovery, I think my handle (noinvisiblehand) describes my thinking very clearly.  I am slowly, but with determination, trying to blend together government agencies, traders, investors, treasuries, banks, producers, consumers, the environment and supply and demand to show that a price is guided by circumstance and human judgement (or lack thereof) to reach a logical equilibrium, NOT guided by a mysterious invisible hand which is a fundamnetally flawed and outdated concept, which gives economists a bad reputation.

The Keynesian Neo-Classical model is a dead fish, and it’s smelling rotten.  Now is the time for brave new thinking which accepts that this current recession is an oppurtunity for us to slow the inevitable downfall of humankind.

There needs to be a balance found between reward and consequence.  Perhaps consequence can be the new buzzword for the profit motive which is the driving force for every boom and bust we’ve ever known.  I’m not saying that profit needs to be eratdicated, for free enterprise does create efficient new technologies.  The ecological and social consequences of the profit motive need to be better appreciated.  The more co-operative the global economy becomes (global localism), the better for society.  WE do, after all, want to see our descendents inheret a liveable world!  Profit for sustainable development is what I hope for.

Although I reject almost all of Keynesian thinking as I train myself up, I do find the concept of global currency fascinating.  The current poor state of the developed world’s balance of payment accounts has a lot to do with the freeze of the global finacial markets, but is hardly mentioned.  If  BOP accounts around the world were more evenly balanced, trade would become both freer and fairer, without too much political interference.

The rich poor divide will always be a fact of life.  But reality of expectation is something which needs to be taught to everyone from a young age.  Stupendous, obscene wealth as well as credit addiction, need to be relegated to the history books. Social and environmental responsibilty should be the new badges of honour, the post-post modern way of becoming famous, of becoming a politician.

So, I sum up this little diatribe by saying that this is what I envisage:
capitalist co-operative sustainable low debt development led by a polical party called The Conservative Left!


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